Source: Maureen Farrell / CNN Money
Apple’s stock bubble continued to deflate Thursday.
Shares of Apple (AAPL, Fortune 500) plunged more than 12%, as investors grew skeptical about the iPhone maker’s growth prospects. Despite reporting a record quarterly profit, Apple’s forecasts showed signs of slowing consumer demand for its products, particularly its iPhonesApple’s stock has been on a steady decline for months. In fact, shares have plunged more than 35% from their all-time intraday high of $705, reached Sept. 21, 2012.
Since then, Apple’s stock has dropped in value by nearly $230 billion, with its valuation slipping to $430 billion in just four months.
With the decline, Apple is a relative bargain, trading at 10 times earnings estimates, down from a PE of 15 when the stock was at its highest point. Compare that to Google (GOOG, Fortune 500), which currently trades at 16 times its expected 2013 earnings.
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